$1000 would earn more interest at an APR of 5.5% compounded monthly than at an APR of 5.3% compounded continuously. True or False?
In first case
A = $ 1,056.41
A = P + I where
P (principal) = $ 1,000.00
I (interest) = $ 56.41
In second case
A = $ 1,054.43
A = P + I where
P (principal) = $ 1,000.00
I (interest) = $ 54.43
Hence in first case interest is greater than in second case.so statement is true.
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